Guarantor Agreements – Being a Guarantor
A guarantor is a person who has agreed to take over certain liabilities from another person if they default (for example, if they are unable to pay rent). This is a common occurrence in housing law, and guarantors are often required when a tenant has a poor credit rating or if the tenant is a young person with no track record of paying for a property.
The guarantor is normally a householder; in the event that the tenant is unable to pay a debt, the guarantor must be able to do so, and owning your own home is taken as a good sign that you can be relied on to pay debts in good time.
When a guarantor agreement is entered into, it can either be for the fixed term of the tenancy or throughout any subsequent periodic tenancy. You should always read all guarantor agreements very carefully before you sign them.
We have dealt with several instances whereby a guarantor agreed to be responsible for the rent of a tenant not just for the fixed term of the contract, but for any subsequent periodic tenancy as well. When the tenant failed to pay rent, the guarantor had to pay. The problem was that the guarantor could not get themselves released from the agreement, and the landlord and tenant were unwilling to allow the guarantor to be released from the contract.
How can I stop being a guarantor?
The only way a guarantor can be released during a contract term is by the consent of the parties. If there is no consent, then the guarantor is not released until the contract expires. Please check any termination clause, as there may be timescales to adhere to.
So the answer to the question, ‘how can I stop being a guarantor?’ is this: you can’t stop being a guarantor until the contract expires, except by mutual agreement. So please be very careful before entering into a tenancy agreement as guarantor.
For more information about tenancy agreements and your role as a guarantor, contact Newbold Solicitors today. We can also draft comprehensive guarantor agreements for as little as £75(+VAT)
A tenancy agreement is a legally binding document between the landlord and the tenant. When the law changes, as it often does, tenancy contracts should be updated to account for these changes.
A tenancy agreement protects both the tenant and the landlord; as such, it is important that the terms and conditions cover all eventualities and set out the rights and obligations of the parties who sign the agreement.
Since tenancy contracts are so important, it is always sensible to have them looked over before they are signed. Once a tenancy agreement is signed, both parties are bound by all the terms.
We have practical experience dealing with problems that arise in the course of a tenancy, so we know exactly what to account for when drawing up a tenancy agreement. Visit our contact page to find your closest Newbold office and make an appointment.
* You may wish to consider a guarantor agreement. If so, Newbold Solicitors will draft a comprehensive agreement for as little as £75.00 (+VAT).